Firmness prevailed on the cotton market on Tuesday in the process of moderate trading, dealers said. The official spot rate was unchanged at Rs 5,400, dealers confirmed on phone. In Sindh, prices of seed cotton were at Rs 2000 and Rs 3000 and in the Punjab, rates were at Rs 2300 and Rs 3150, they said. In the ready business, around 7000 bales of cotton changed hands between Rs 5350 and Rs 5700, they said.
According to the market sources, needy buyers covered their immediate requirements despite higher rates. Cotton analyst, Naseem Usman said that downward trend in the international market may be a negative factor behind the lack of buying interest among spinners in the near future. In an effort to achieve better result in cotton production and quality, a two-day workshop on avoidance and settlement of cotton dispute by the International Cotton Association (ICA) started on Tuesday in Karachi, confirmed on phone.
Reuters adds: Cotton futures had their sharpest single-session decline in six weeks on Monday, dragged down by declines in crude oil and across the commodities complex, as uncertainty remained around China's potential plans to offload its massive cotton stockpile.
"There's no real supportive news out there," said Ron Lawson, a partner at commodity investment firm Logic Advisors in Sonoma, California. "The wind's blowing south - (cotton) is going to head that way." March cotton on ICE Futures US settled down 0.85 cent, or 1.36 percent, at 61.60 cents per lb, marking the sharpest day of losses since December 10. It traded within a range of 61.41 and 62.49 cents a lb.
Total futures market volume rose by 9,601 to 27,253 lots. Data showed total open interest gained 1,517 to 191,991 contracts in the previous session. The following deals finalised: 1000 bales of cotton from Faqirwali at Rs 5350, 400 bales from Lyyah at the same rate, 600 bales from Haroonabad at the same rate, 400 bales from Borewala at Rs 5375, 1000 bales from Fort Abbas at Rs 5375, 600 bales from Yazman Mandi at Rs 5425, 400 bales from Fazilpur at Rs 5500, 600 bales from Khenewal at the Rs 5700, 600 bales from Rahim Yar Khan at the same rate, 600 bales from Saleput at Rs 5500 and same figure from Khediro at Rs 5125, they said.
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The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
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FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
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MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 25-01-2016
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37.324 kg 5,400 135 5,535 5,535 NIL
Equivalent
40 kgs 5,787 145 5,932 5,932 NIL
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